This is simply not how I understand the statute.Dear Abby, I know that I am probably just feeling insecure about myself after this otherwise-trustworthy PM firm sold me this bill of goods and then agreed to remedy the situation after only a few arm twists by people stronger than me.  

A short sale will probably not work, because they usually have to be an arms length transaction - not relatives.If she has dementia, somebody in the family needs to step up and get some kind of POA process underway.  

I have a choice in my financing: to do a 7/1 ARM or a conventional 30 year.

Ask your lender you have higher reserve and take arm so you can have lower interest rate to lower the dti. 

We have not explicitly made him an offer yet, but that is mainly because we don't understand how we are to structure this, the main reason being these properties are currently mortgaged. 

When posting a vacancy, be explicit about who is welcome to apply.4. 

There is a quick 10 sec segment where he hits a roadblock and he throws his arms up and says "I give up!  

We have a brokerage arm that works with traditional buyers & sellers as well as in the investment arena so I'll be able to give advice from both sides of the spectrum to help you make a more educated decision.  

Do you think 2.875% for 7/1 arm with a credit of 3300 is a good deal?

If you're ok with commercial financing that comprises some combination of a higher rate, ARM, balloon payments, etc etc, then dial for dollars until you find a commercial lender that'll go for it, and ask them how it works with them.